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Today, JPMorgan Chasereported a net loss of $380 million in its third quarter, largely attributable to $7.2 billion in after-tax legal expenses which included reserves for litigation and regulatory filings. Were it not for that and other significant items, JPMorgan had a net income of $5.8 billion. In the third quarter of 2012 the company reported a net income of $5.7 billion.

Of the results, Chief Executive Jamie Dimon noted in the company press release, "While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expenses." As it relates to the legal expenses, he also added, "we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters."

JPMorgan has been buffeted with legal woes recently, including the London Whale incident, questions surrounding its mortgage operations, the LIBOR scandal, and an investigation by the SEC surrounding possible bribery in China. Its total litigation reserves now stand at $23 billion.

It also watched its revenue fall by approximately $2 billion both when compared to the second quarter of this year and the third quarter of 2012.

The Consumer & Community Banking business of JPMorgan saw its revenue fall significantly when compared to the third quarter of 2012, as it fell $1.6 billion. However, despite the drop in revenue, its net income rose by $350 million thanks to improving credit conditions. Its Mortgage Product segment did see its revenue fall by $1.2 billion when compared to the prior year.

JPMorgan's Corporate and Investment Bank saw its revenue decline sharply when compared to the second quarter, as it fell $1.7 billion, or 17%. Its revenue was flat when compared with the third quarter of 2012. Yet when compared to the third quarter of last year, the business did see its net income rise by 12%. The Corporate and Investment Bank had a return on equity of 16% in the third quarter of this year compared to 17% in the third quarter of 2012.

Dimon concluded the release by adding "We continue our intense focus on our legal, control, and regulatory agenda - we are simplifying our business and making unprecedented investments in controls, which will make our company better and stronger for the long-run."

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